SABADELL ENHANCED SUPPORT SMES&MIDCAPS ABS II

Promoter – Financial Intermediary

BANCO DE SABADELL SA

Location

• Spain

Description

The operation consists in the purchase of a mezzanine tranche of a true-sale securitisation to stimulate lending to small, medium sized businesses and midcaps. This is a sub-operation presented under the EU Programme Loan for ABS Operations (2022-0538).

Additionality and Impact

The operation will help address the working capital, liquidity needs, and investment constrains of SMEs and Midcaps in Spain during a period of economic uncertainty. The challenges faced include elevated interest rates, core inflation, subdued domestic consumption, energy security issues and the ongoing war in Ukraine.

The economic impacts are widespread, as value-chains have been disrupted and consumer demand has slowed down. SMEs and Midcaps are facing financial stress and bankruptcies and without addressing their short-term liquidity and investment needs, the adverse economic effects could be long-lasting

The project is therefore eligible under Article 309 point (a) projects for developing less developed regions and point (c) common interest.

Objectives

The Multi-beneficiary intermediated loan (MBIL) to Banco de Sabadell aims to support investments promoted by the target beneficiaries.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 35 million

Total cost (Approximate amount)

not applicable

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 24/09/2024